Offering your customers online payment method alternatives may be what leads a customer to purchase from you instead of a competitor. By offering your customers ACH payment processing (i.e., eChecks using ABA numbers and account numbers) your customer base can avoid loading debt unto their credit cards. Not only will you save them the hassle of dealing with their credit cards, but they will also reap other benefits.
The major disadvantage to ACH payment processing is that there is no real time authorization of the transaction. Instead, transactions are debited electronically several days later. Because of this, fraud rates are a little higher than credit cards because you cannot know instantly if the account has funds available. The benefit, however, is that the funds are drawn from the customer's bank account. You can accept payments online, in store, by phone. Additionally, you can convert paper checks into eChecks.
Another great advantage to ACH payment processing is that the transaction fees tend to be drastically lower. While credit cards may charge a percentage of the transaction, ACH transactions tend to be charged a flat fee per transaction. Additionally, your customer won't have to worry about paying credit card interest, and will avoid the inconvenience of mailing a paper check. By using ACH transactions, you can also setup recurring billing with your customers.
eCheck processing is a method of running a check through a check scanner and then submitting it for electronic payment. This saves merchants the hassle of taking checks to the bank.
You can also process eChecks by submitting the information from the paper check through a secure, web-based system. You enter the bank name, the account number, and the ABA number. You can get this information from your customer via any method (phone, web, mail). We highly recommend using our ABA number lookup to verify that the ABA number matches the bank name.